Intro -- Contents -- I. INTRODUCTION -- II. BASIC FRAMEWORK -- III. BASELINE CALIBRATIONS -- IV. DOMESTIC ADDITIONAL EFFORT, POVERTY TRAPS, AND "TAKEOFF" -- V. EXTENSIONS -- VI. CONCLUDING REMARKS -- REFERENCES.

Intro -- Contents -- I. INTRODUCTION -- II. A BENCHMARK: PRINCIPLES OF DECENTRALIZATION REFORM -- III. UGANDA'S DECENTRALIZATION PROCESS: THE INSTITUTIONS -- IV. SPECIFIC OUTCOMES IN SERVICE DELIVERY -- V. FINAL REMARKS -- References.

Does reliance on transfers weaken fiscal discipline and encourage pro-cyclical fiscal policies in recipient subnational governments? Using fiscal reaction functions for a panel of the German Länder, this paper finds a positive answer to both questions. Net-recipient states (Länder, benefiting...